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Pinterest spikes more than 25% above IPO as investors embrace new unicorn

Pinterest, the digital scrapbooking site, surged in its debut as a publicly traded company on the New York Stock Exchange, finishing the day more than 25% higher than its original price as investors momentarily rallied around technology’s latest unicorn.

The company (
PINS
) is just one of a stampede of unicorns — private companies that have raised at least $1 billion — set to IPO this year. It began trading the same day as Zoom (
ZM
), which
priced its own IPO at $36 a share
.

Pinterest’s IPO pricing at $19 was above a price range of $15 to $17 a share it set in an amended
S-1 filing
earlier this month. The initial lower range raised some concerns because it would have valued the site lower than its valuation after its latest round of private financing.

Source: David Foster/Yahoo Finance

Still, the company’s revenue is growing steadily as its losses are falling, underscoring why markets are embracing Pinterest’s stock — at least for now.

“I think Pinterest has a proven business model, a cult following, and its customers are very loyal to the company and the solution that it provides,” Alejandro Ortiz, a research analyst with SharesPost, a San Francisco private trading marketplace, t
old Yahoo Finance in an interview.